YES AND NO...THE STRANGE CASE OF US GOVERNMENT DEPOSIT GUARANTEES
Technically correct doc as far as it goes...the explicit guarantee for $250,000
There is another implicit deposit guarantee provided by the Federal Govenment
Indirectly through the FHLB's
You will notice that the FHLB's will bail out a bank experiencing a deposit run by depositing money into them equivalent to the run.
But it appears that the FHLB will require the bank to run down its liquid investments first to pay out the depositors...hence all the realized bond losses being revealed by the banks - a forced reveal.
See Silvergate, see Signature bank
The FHLB's are basically providing exit liquidity.....
Providing a withdrawal guarantee for the deposit Whales
It is implicit...but it exists in reality.
And that is all that matters.
I should have mentioned this in my original post.